Last updated 2026-07-25
TL;DR
A treasurer is responsible for tracking every dollar in and out, keeping bank and cash records straight, reporting finances to the board, and making sure the group files its annual IRS return (Form 990, 990-EZ, or 990-N) on time. Miss three years of filings and the IRS automatically revokes tax-exempt status.
what does a treasurer do?
A treasurer is the person a nonprofit, booster club, PTO, or youth sports group trusts to track and report every dollar that moves through the organization. That means recording deposits and withdrawals, reconciling the bank statement every month, keeping receipts for anything the group buys, and giving the board (or the general membership) a clear picture of the finances at every meeting. In small volunteer organizations, the treasurer often does double duty as bookkeeper, tax filer, and sometimes even the only person who knows the bank login. That's a lot of responsibility to sit on one volunteer, which is exactly why the job needs a system, more than a good memory. At the most basic level, a treasurer's job breaks into four buckets: recordkeeping (every transaction, dated and categorized), reporting (monthly or quarterly summaries to the board), compliance (annual tax filings and, if the group runs raffles or bingo, state gaming license renewals), and controls (making sure no single person can move money without a second set of eyes).
what is a treasurer?
A treasurer is an officer, usually elected or appointed under the organization's bylaws, who has legal and practical authority over the group's money. Most nonprofit bylaws name the treasurer as the officer responsible for financial records and reports, sometimes alongside the secretary who handles minutes and correspondence. The treasurer isn't the owner of the money. They're the custodian. The funds belong to the organization (or, if it's tax-exempt, arguably to the public purpose it serves), and the treasurer's job is to account for every dollar as if someone might ask for a full explanation tomorrow. In a lot of small booster clubs, someone eventually does ask, usually a new principal, a skeptical parent, or the IRS. Legally, being treasurer of an unincorporated association or a 501(c)(3) nonprofit can carry personal exposure if you sign off on filings you know are wrong or if you commingle organization funds with your own. That's not a reason to panic, but it is a reason to keep clean books from day one.
what do treasurers do day to day, week to week, and month to month?
| Weekly | Deposit cash/checks, log transactions, file receipts | |
|---|---|---|
| Monthly | Reconcile bank statement, report to board, pay recurring bills | |
| Quarterly | Compare actual spending to budget, review any outstanding reimbursements | |
| Annually | File the IRS return (990-N, 990-EZ, or 990), renew state charity registration if required, prepare for officer handoff | None of this requires an accounting degree. It requires consistency and a habit of writing things down the same day they happen, not three weeks later from memory. |
Day to day, a treasurer deposits checks and cash promptly, logs every transaction in a ledger or accounting software, and keeps receipts filed by date or category. Week to week, they follow up on outstanding invoices, reconcile any fundraising cash box, and make sure two people (never just one) count and verify any cash collected at events. Month to month, the job shifts to reporting: reconciling the bank statement against the ledger, preparing a simple income-and-expense report for the board meeting, and flagging anything unusual (a bounced check, a missing receipt, a budget line running over). Here's a rough monthly rhythm that works for most small groups: | Frequency | Task |
what does a treasurer of a club do differently from a corporate treasurer?
A club treasurer (PTO, booster club, youth sports league) handles the same core duties as any treasurer, but usually on a much smaller scale and with volunteer labor instead of paid staff. There's no CFO, no finance department, and often no professional bookkeeper checking the work. That makes the club treasurer's job both simpler and riskier at once. Simpler because the transaction volume is small, maybe a few thousand to a few hundred thousand dollars a year. Riskier because there's often only one person who understands the books, and when that person moves on (which happens every year or two in most PTOs), the new treasurer inherits whatever mess or clean handoff they're given. A club treasurer's specific duties usually include: - Managing the group's single bank account (sometimes two: a general fund and a fundraising or booster-specific account)
- Collecting and tracking membership dues, concession revenue, or program fees
- Filing the group's annual IRS return, almost always Form 990-N for the smallest orgs [1]
- Reporting to the school, athletic department, or district if the club affiliates with one
- Renewing charitable solicitation registration with the state, if applicable in that state
- Keeping a paper (or digital) trail so the next treasurer isn't starting from zero Many school-affiliated booster clubs also have to answer to district finance policies on top of IRS rules, so check both.
what is Form 990, and does a small club have to file it?
Form 990 is the annual information return the IRS requires from most tax-exempt organizations, reporting revenue, expenses, and activities for the year. Nearly every organization recognized as tax-exempt under Section 501(c) has to file some version of it annually, even if it owes zero tax [2]. Which version depends on gross receipts and assets. Organizations with gross receipts normally $50,000 or less file the e-Postcard, Form 990-N. Those with gross receipts under $200,000 and total assets under $500,000 generally file the shorter Form 990-EZ. Larger organizations file the full Form 990 [3]. The IRS describes 990-N plainly: "Most small tax-exempt organizations whose gross receipts are normally $50,000 or less... are required to electronically submit Form 990-N" [1]. For a typical booster club running a snack shack and a few fundraisers, that's almost always the form that applies, unless the group had an unusually big year. Details on choosing the right version live at form 990 and the specific 990-n filing walkthrough.
what is a 990 tax form, and what's the difference between 990-N, 990-EZ, and full 990?
| 990-N (e-Postcard) | Gross receipts ≤ $50,000 | 8 basic data items, filed online, no financial detail [1] | |
|---|---|---|---|
| 990-EZ | Gross receipts < $200,000 AND total assets < $500,000 | Summary financial statements, program service info [3] | |
| Form 990 | Gross receipts ≥ $200,000 OR total assets ≥ $500,000 | Full financial statements, governance disclosures, compensation | A group that ran a big one-time fundraiser and crossed $50,000 in gross receipts for that year has to bump up to the 990-EZ or full 990, even if the next year it drops back below the threshold. Gross receipts, not net profit, is the number that matters, so a $60,000 concession stand with $55,000 in cost of goods still counts as $60,000 in gross receipts for this test. More detail on each version at 990 tax form and irs form 990. |
The 990 tax form is really a family of forms, not one document, and the version your club files depends entirely on its financial size that year. Filing the wrong one, or not filing at all, is one of the most common mistakes new treasurers make when they inherit an organization mid-year. | Form | Who files it | What it requires |
what happens if a treasurer misses the 990 filing deadline?
Missing one year's 990 filing usually just means a late return, sometimes with a penalty if the organization owed anything (most small exempt orgs don't). Miss three consecutive years, though, and the consequence is much bigger: automatic revocation of tax-exempt status. The statute is specific. Under Internal Revenue Code Section 6033(j), an organization that fails to file its required annual return or notice for three consecutive years "shall have its status as an organization exempt from tax... revoked" as of the filing due date of the third year [4]. The IRS doesn't send a warning letter before this happens in most cases; it happens automatically, and the group finds out later when a donor asks for a determination letter that no longer exists, or when the bank asks for proof of exempt status. Revocation means the organization becomes taxable, loses the ability to tell donors their gifts are tax-deductible, and has to reapply for exemption (usually via Form 1023 or 1023-EZ) to get reinstated. The IRS maintains a searchable list of organizations that have lost their exemption this way [5]. The filing due date is the 15th day of the 5th month after the organization's fiscal year ends, so for a calendar-year group, that's May 15 [1]. Mark it on a calendar the day you take the job, because it's the deadline that ends careers of good intentions.
what does a treasurer do if the organization already lost its tax-exempt status?
First, confirm the revocation is real by searching the IRS Tax Exempt Organization Search tool, which lists organizations with automatically revoked status [5]. Sometimes a group assumes the worst when really a filing just hasn't posted yet, so check before panicking. If revocation is confirmed, the path back is reinstatement, typically through Form 1023-EZ (for smaller organizations) or the full Form 1023, along with the required filing fee. Revenue Procedure 2014-11 sets out streamlined retroactive reinstatement procedures for organizations that were eligible to file 990-N or 990-EZ and apply within 15 months of the revocation date, which can restore exempt status back to the original revocation date without a gap [6]. This is squarely the kind of situation where confirm with the IRS and, if the group solicits donations across state lines or in a state with charitable registration requirements, your state charity office before filing anything. The rules on retroactive reinstatement have specific timing windows, and getting the wrong form or missing the window can mean the organization is treated as newly formed rather than reinstated, which changes how prior-year donations are treated for donors. A treasurer walking into this mess should also loop in the board immediately. This isn't a one-person fix, and the board needs to know the organization may have been operating without tax-exempt status for a stretch of time.
what financial controls should a treasurer put in place?
The single biggest control a small organization can add is separation of duties: the person who counts cash at an event isn't the same person who deposits it or reconciles the bank statement alone. Two-person cash counts, dual signatures on checks over a set dollar threshold, and a second officer who reviews the bank statement each month catch both honest mistakes and the rare bad actor before either becomes a crisis. Other controls worth adopting even in a bare-bones volunteer group: - A written cash-handling procedure for every fundraiser, concession stand, or ticketed event
- Pre-numbered receipt books or a simple point-of-sale app for cash sales
- A rule that no reimbursement gets paid without an original receipt
- Monthly bank reconciliation reviewed by someone other than the treasurer
- An annual, or at minimum biennial, independent review of the books by someone outside the treasurer's immediate circle None of this requires expensive software. A shared spreadsheet with a locked formula tab and a monthly second-signer review stops most of the problems that sink volunteer treasuries. The goal isn't distrust of any one treasurer; it's protecting the treasurer, too, from being the only person who could ever be blamed if numbers don't add up.
what should a treasurer hand off to the next treasurer?
A clean handoff includes bank account access and signer changes, a full year of reconciled bank statements, the most recent 990-series filing confirmation, any state charity registration renewal date, and a written summary of any open issues (outstanding checks, pending reimbursements, upcoming grant reports). Too many treasurer transitions happen with a shoebox of receipts and a login scribbled on a sticky note. The next treasurer then spends three months just figuring out what happened before they can do the actual job. A basic handoff checklist, given to every incoming treasurer on day one, saves that scramble: 1. Bank account numbers, online access, and signer list, updated within the bank's required timeframe 2. Prior 12 months of bank statements and reconciliations 3. Copy of the most recent IRS determination letter and most recent 990-series confirmation 4. State charity registration status and renewal date, if the state requires it 5. Any raffle or gaming license status, if applicable 6. A short written note on anything unusual from the past year Organizations that build this into their bylaws ("the outgoing treasurer shall deliver X, Y, Z within 30 days") have far fewer disasters than ones that leave it to informal goodwill.
does a booster club or PTO treasurer need to worry about state charity registration too?
Many states require organizations that solicit charitable donations to register with a state charity office or attorney general before fundraising, separate from anything the IRS requires. This catches a lot of new treasurers off guard, since it's easy to assume the 990 filing covers everything. Whether a specific booster club or PTO needs to register, and whether there's an exemption for small organizations or school-affiliated groups, varies significantly by state. Some states exempt organizations below a certain revenue threshold or with a specific relationship to a school district; others don't carve out any exemption at all. Confirm with your state charity office or attorney general's charitable registration division directly, since thresholds and exemptions change and a general national guide can't account for every state's rule. A quick way to find your state's office: search "[your state] attorney general charitable registration" or "[your state] charity regulator." Most have a dedicated registration page listing thresholds and required forms.
how does the treasurer role connect to raffle licensing and cash-heavy fundraisers?
If a club runs a raffle, 50/50, or bingo night, the treasurer is usually the one who has to secure and track the required state gaming or raffle license, since these events involve cash handling rules well beyond normal fundraiser bookkeeping. Requirements differ by state; some states require a specific raffle permit application weeks in advance, cap the percentage of proceeds that can go to expenses, or require post-event reporting of ticket sales and prize payouts. Because these rules vary so much (and change), the safest approach for a first-time raffle is to confirm with your state charity office or state gaming/lottery regulator well before the event, not the week of. A treasurer who assumes the club's 501(c)(3) status alone covers raffle legality is making a common and avoidable mistake.
Frequently asked questions
what does a treasurer do?
A treasurer tracks all money coming in and going out, reconciles bank accounts, reports finances to the board, and makes sure required tax filings (like the IRS 990-series return) and any state charity registrations happen on time. In small clubs, they're often the only person who fully understands the books.
what is a treasurer?
A treasurer is an officer of an organization, elected or appointed under its bylaws, responsible for the custody, recordkeeping, and reporting of the group's money. They don't own the funds; they account for them on behalf of the board and members.
what do treasurers do?
Treasurers deposit and record income, pay and log expenses, reconcile bank statements monthly, report to the board, and file the organization's annual tax return. In cash-heavy groups, they also set up controls like dual cash counts and receipt tracking.
what does a club treasurer do?
A club treasurer (PTO, booster club, league) manages a single bank account, tracks dues and fundraiser income, files Form 990-N or 990-EZ annually, and often renews any required state charity or raffle registration. It's the same job as any treasurer, scaled down to volunteer size.
what is Form 990?
Form 990 is the IRS's annual information return for tax-exempt organizations, reporting revenue, expenses, and activities. Nearly all 501(c) organizations must file some version yearly, even with zero tax owed, per IRS filing requirements (irs.gov).
what is a 990 tax form?
It's a family of IRS forms (990-N, 990-EZ, or full Form 990) that tax-exempt organizations file annually based on gross receipts and total assets. The smallest organizations, under $50,000 in gross receipts, file the simple 990-N e-Postcard.
what is the 990?
The 990 refers to the IRS annual return required of most tax-exempt organizations. The version required (990-N, 990-EZ, or full 990) depends on the organization's gross receipts and total assets for that fiscal year.
what happens if a treasurer never files the 990?
Missing one year usually just triggers a late filing. Miss three consecutive years and the IRS automatically revokes the organization's tax-exempt status under Internal Revenue Code Section 6033(j), with no advance warning notice required.
does a small booster club really have to file anything with the IRS?
Yes. Even organizations with no paid staff and under $5,000 in annual revenue generally must file Form 990-N annually if they hold IRS tax-exempt status, unless they're a church or specifically excepted. Confirm your group's exact filing obligation with the IRS.
what's the difference between a treasurer and a bookkeeper?
A bookkeeper records transactions. A treasurer, in a nonprofit or club setting, is the officer accountable for the accuracy of those records, for reporting to the board, and often for compliance tasks like tax filings. Many small-club treasurers do both jobs at once.
how much money can a treasurer be responsible for before hiring outside help?
There's no fixed rule, but groups approaching $200,000 in gross receipts (the threshold that pushes filing from 990-EZ to full Form 990) often benefit from a bookkeeper or accountant, since the reporting requirements and audit risk both increase noticeably at that size.
can a treasurer be held personally liable for mistakes?
Generally no for honest errors, but knowingly signing false filings, commingling funds, or ignoring known fraud can expose a treasurer personally. Good documentation, board oversight, and following bylaws are the best protection; this isn't legal advice, so consult an attorney for specific liability questions.
what should happen when a treasurer hands off to a new person?
The outgoing treasurer should transfer bank access, a year of reconciled statements, the latest IRS filing confirmation, and any state registration renewal dates, ideally within 30 days of the transition, with a written note on any open issues.
Sources
- IRS, Annual Electronic Filing Requirement for Small Exempt Organizations (Form 990-N): Organizations with gross receipts normally $50,000 or less file Form 990-N, and the due date is the 15th day of the 5th month after fiscal year end
- IRS, Annual Exempt Organization Return: Who Must File: Most tax-exempt organizations must file an annual information return
- IRS, Form 990-EZ instructions: Form 990-EZ eligibility thresholds: gross receipts under $200,000 and total assets under $500,000
- 26 U.S.C. § 6033(j) via Cornell Legal Information Institute: Automatic revocation of tax-exempt status after three consecutive years of failing to file required returns
- IRS, Tax Exempt Organization Search: IRS maintains a searchable database of organizations that have had exempt status automatically revoked
- IRS Revenue Procedure 2014-11, 2014-3 I.R.B. 411: Organizations eligible for 990-N or 990-EZ can apply for streamlined retroactive reinstatement within 15 months of revocation